RTA says money will run out in June unless state comes through
Like school districts, municipal governments, and social service agencies across Illinois, the RTA is singing the familiar "the state owes us money" blues.
The state of Illinois owes the RTA about $280 million in sales and real-estate-transfer taxes, intended to be used for public transit. The agency only has enough money in reserve to cover the gap until June, Regional Transportation Authority officials said Thursday, adding they worry what the consequences will be for the CTA, Metra and Pace if the government doesn't pony up.
With a $13 billion budget shortfall, the state already is in arrears on payments to multiple entities.
"The state is trying to pay a lot of people," RTA Executive Director Steve Schlickman said. "Day to day, they're looking for the squeaky wheel and we're squeaking very strongly."
It's déjà vu for the RTA. In February, the agency pointed out the state owed it about $250 million. The government coughed up $48 million but the RTA's been using borrowed cash to subsidize payments to the three transit agencies it has authority over and that money is running out.
"Our working cash is dwindling," Schlickman said.
As of June, the agency won't have the cash to pay its debts or pass on funding to mass transit providers. In a given month, that could represent a loss of $13 million to the CTA, $3.4 million to Metra and $1.1 million to Pace.
Officials did say they were in "high-level" talks with Gov. Pat Quinn's office and the Illinois Department of Transportation about the crisis. When asked about the shortfall, IDOT Secretary Gary Hannig had no comment.
"We are aware of the situation and are hopeful a solution is forthcoming," Metra spokesman Michael Gillis said.
Pace officials said it was premature to talk about doomsday scenarios.
"We're relying on RTA in its role as our financial oversight agency to provide us with specifics on whether our funding will be reduced or by how much as part of its budget amendment process," spokesman Patrick Wilmot said via e-mail. "We need the RTA to develop a plan and guide the process so we can examine alternatives."